Interesting they cut EBITDA guidance by an amount in line with my expectations but dividend guidance is cut by nearly 20% from a mid point of 49 cents previously to 40 cents. That's a bit surrpiseing, I would have thought 42-44 cps. Perhaps the size of the dividend guidance cut signals the lack of confidence they have about their business model as a result of pending legislative changes ?
Serious dividend cut could also be as a result of capex requirements I was previously alluding too, $2m for new fuel price display signs and ~ $9m for expanded jet fuel capacity at their Wiri storage facility.
Too early to have a think about whether 40 cents is the new benchmark to think about in terms of future years dividends but the new EBITDA guidance is a fresh multi year low that won't surprise me if its very sticky.
I feel sad for shareholders. I don't have much confidence in Mike Bennetts for reasons I won't go into.
$4 on the cards now.
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